Senior Housing at $40K a Room with Rod Khleif

Rod Khleif is buying assisted living buildings at $40,000 a room. Replacement cost is $250,000.

Rod Khleif lost $50 million in 2008 when a cross-collateralized package of 800 houses pulled his multifamily portfolio down with it. He rebuilt. His students now collectively own more than 305,000 units.

In this conversation Rod walks through what he is buying right now, and the math is hard to believe until he shows it. He has two assisted living memory care facilities closed and five more under contract across San Antonio, Houston, and Dallas, at $40,000 per unit. Replacement cost on those same rooms runs $250,000 to $350,000. He calls it the best deal of his career, and he had to soften the occupancy assumptions on the proforma because the real numbers looked unbelievable.

He also lays out why multifamily is in a tailspin, with roughly $1 trillion in debt coming due, sales down about 90 percent, and refinancing nearly impossible under current debt service coverage requirements. His read on it is straight Buffett: be greedy when others are fearful.

In this episode:

Why Rod walked away from senior housing in 2008 and came back to it nowThe silver tsunami math: 8,000 to 10,000 people a day turning 80, with only about 4% of needed beds getting builtHow he vets a senior housing operator, and the last-minute red flag that ended a dealWhy five units and up beats a fourplex, because value runs on net income instead of comparable salesA 296-unit property where a $25 parking spot created a $750,000 increase in value

About Rod Khleif: Rod has owned and managed more than 2,000 homes and multiple apartment complexes, built 30 businesses, and hosts one of the largest commercial real estate podcasts in the world. He spent 26 years around Tony Robbins, eight of them on his team, and his Warrior coaching program is built around the same recovery methodology he used after 2008.

Links:

🔗 Rod's free books, goal setting workshop, podcast, and $25 two-day bootcamp: https://rodslinks.com

📲 Text LINKS to 72345

📲 Accredited investors, text PARTNER to 72345

🔗 Build systems for your investing business: https://realdealcrew.com